Problems with Cycle to Work scheme could be addressed, minister claims

Commuters cycle in front of a bus in The City of London
-Credit: (Image: Jason Alden/Bloomberg via Getty Images)


Ministers are assessing how to help more low-income workers buy a bike after acknowledging the Cycle to Work scheme has “problems”. Transport minister Simon Lightwood said he will be working closely with his colleagues in the Treasury to respond to the concerns.

Cycle to Work vouchers enable millions of people to receive discounts on new bikes and cycling equipment of 30-42%, with payments made through salary sacrifice. They are available to people who earn at least minimum wage after the deductions and are paid and taxed via a pay-as-you-earn (PAYE) system.

Ineligible people include those who are not in work, self-employed, work for a non-participating employer or earn up to £17,000 per year. Active travel charity Sustrans last month warned nearly two million people are unable to access Cycle to Work initiatives and proposed a parallel voucher system offering a 40% discount on new bike purchases to people on low incomes.

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Speaking at transport questions on Thursday, SNP MP Seamus Logan (Aberdeenshire North and Moray East) told the Commons: “The brilliant Cycle to Work scheme runs across the four nations of the islands, but under current rules, it can’t be used if you earn less than £17,000-a-year. This is almost certainly contributing to the fact that only 30% of people on lower incomes have access to a cycle compared to 59% on higher incomes, that’s almost double.

“Various solutions have been proposed, including Sustrans’ suggestion of a voucher giving 40% off the cost of a cycle. Can the minister do anything to address this unfair situation and help our national governments to support people on lower incomes who would like to be able to take advantage of the Cycle to Work scheme?”

Mr Lightwood replied: “I absolutely recognise the problems that we have with that scheme and will be working closely with our colleagues in the Treasury regarding that. I was delighted to be at the launch of the report by Sustrans in the Palace (of Westminster) a couple of weeks ago and will be paying careful attention to the recommendations that they have placed in that report.”

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Other recommendations by Sustrans included providing secure and accessible residential bike parking, increasing the number of traffic-free cycling routes in the most deprived areas, and ensuring cycling policy takes into account people on low incomes or out of work. Elsewhere at transport questions, Transport Secretary Louise Haigh said the Government is “determined to take back streets” for all users after the Conservatives engaged in “poisonous culture wars”.

She was responding to a question by Liberal Democrat MP Wera Hobhouse who asked what ministers will do to make it safer for cyclists in her Bath constituency. Ms Hobhouse said: “Road safety is one of the main reasons why young people do not cycle, this is particularly true for cities like Bath where historic infrastructure makes it very difficult. What will the Government do to help young cyclists particularly to make it safer and make roads safer in Bath?”

Ms Haigh replied: “I’m grateful to her for raising that point and it sits at the heart of our ambition to develop the new road safety strategy. The previous government pursued poisonous culture wars against road users of all descriptions. We are determined to take back streets for pedestrians, cyclists and drivers. And that will be at the heart of our new ambition for the road safety strategy.”

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